How to Avoid Credit Card Debt While Gaining the Benefits

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Despite the risks involved in using a credit card, it’s a useful and rewarding tool, when it is used properly.
Here are our recommendations on how to use your credit card and avoid debt.

Read the Fine Print

Learn everything about your credit card. Review your card’s terms and conditions and the perks it offers. Knowing this information will help you use your credit card wisely.

Establish Spending Rules

When you’re planning to get a credit card, think about how you’re going to use it. For example, use your credit card for emergencies only.

Don’t Spend More than You Can Afford

Don’t use your credit card to go on a shopping spree. Avoid credit card debt by living within your means and using your credit card on things that you could actually afford to pay before the interest free period expires.

Keep Tabs of Your Credit Card Accounts

Track your credit card expenses by checking your card regularly and make sure you haven’t over spent.

Pay Your Credit Card Bills On Time

You can easily avoid credit card debt by paying your bill on time. Avoid late fees and interest charges. Always aim to pay off your credit card balance before your interest free period expires. Paying just the minimum amount each month will mean carrying a balance and incurring a tonne of interest. Avoid it by planning your spending so your budget covers your entire bill each month.

Only Have One Credit Card

Avoid having more than one credit card. Having multiple cards will only encourage excess spending.

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